New Issue: HSBC prices $7.47 million knock-out buffer notes linked to iShares MSCI Emerging Markets

By Angela McDaniels

Tacoma, Wash., Feb. 2 - HSBC USA Inc. priced $7.47 million of 0% knock-out buffer notes due Aug. 4, 2011 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the exchange-traded fund's closing share price is less than 73% of the initial share price on any day during the life of the notes, the payout at maturity will be par plus the fund return, which could be positive or negative. Otherwise, the payout will be par plus the fund return, subject to a floor of par.

J.P. Morgan Securities Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying ETF:	iShares MSCI Emerging Markets index fund
Amount:	$7,473,000
Maturity:	Aug. 4, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	If ETF shares fall below 73% of initial share price during life of notes, par plus fund return; otherwise, par plus greater of 0% and fund return
Initial share price:	$38.26
Pricing date:	Jan. 29
Settlement date:	Feb. 3
Agent:	J.P. Morgan Securities Inc.
Fees:	1.25%
Cusip:	4042K0M85

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